What to look for when buying a 6.0. - Please add to tech file.
I know this thread exists in the 6.0 tech files already but I have something to add and I can't respond to the sticky that is there. Hopefully a moderator can add this.
Look at the turbo compressor outlet pipe where it drops down toward the intercooler next to the radiator. There is a blue rubber expansion joint. If this area appears to be oily then the oil is coming from a leaky piston ring seal in the turbo. A remanufactured turbo is $850 to well over $1000 not including installation. They sell do it yourself rebuild kits but I do not recommend this because a properly remanufactured turbo has to be spin balanced or it will wear out prematurely.
I used to work at Garrett and can tell you that you can take a turbo apart and reassemble it exactly how you had it with the same exact parts and the wheel will be out of balance most of the time. The high speed spin balancers are very accurate and sensitive to slight build changes.
I hope this helps someone.